HM Government has announced its latest tranche of trade sanctions against Russia, four months after the country’s invasion of Ukraine and part of a sustained programme of UK sanctions which the Daily Update recaps here.
Introduced from 22 June 2022, the new measures place prohibitions on the export, supply and delivery, making available and transfer (as well as related technical assistance, financial services, funds and brokering services) of:
- internal repression goods and technology
- goods and technology relating to chemical and biological weapons
- maritime goods and technology
- additional oil refining goods and technology
- additional critical industry goods and technology
Fuel, finance and steel
There are also prohibitions on the export to, or for use in Russia of jet fuel and fuel additives, as well as prohibitions on the making available, export, and supply of such products to Russia.
Prohibitions are also introduced on the export to, or for use in, Russia, of Sterling or EU denominated banknotes; as well as prohibitions on the making available, supply, or delivery of the banknotes to a person connected with Russia.
Some of the above prohibitions will relate to Russia, and the non-government controlled Ukraine territories.
Further prohibitions are on the import, acquisition or supply and delivery of revenue-generating goods that originate in or are consigned from Russia (as well as related technical assistance, financial services, funds, and brokering services).
Prohibitions on the provision of technical assistance, and financial services, funds, and brokering services relating to iron and steel imports.
Full details of the new measures, which augment the sanctions measures introduced in 2014, can be found in The Russia (Sanctions) (EU Exit) (Amendment) (No. 10) Regulations 2022.
The latest sanctions are in addition to a range of measures brought in by HM Government since the Russian invasion of Ukraine four months ago.
February 2022: the first sanctions
An initial wave of post-invasion UK sanctions in February included:
- Asset freezes on Russian banks, named individuals, companies and Russian politicians
- Travel bans for named individuals
- A ban on Russian national airline Aeroflot using UK airspace and airports
- Suspension of dual-use export licences to Russia for items that could have a military or civilian use
March-April 2022: MFN status ended
In March, the UK denied Russia and Belarus access to Most Favoured Nation tariff for hundreds of their exports, depriving both nations key benefits of WTO membership.
The UK government published an initial list of goods worth £900 million - including vodka - which now face a 35% tariff, on top of current tariffs.
These were followed up in April with further trade sanctions expanding the list of products facing import bans and increasing tariffs.
The sanctions on more than £1bn of Russian goods included import bans on silver, wood products and high-end products from Russia including caviar.
May 2022: third sanctions wave
A third package of sanctions was announced in May on targeting £1.7bn worth of trade with Russia and Belarus.
Export bans targeted more than £250m of goods in sectors of the Russian economy most dependent on UK goods, including key materials such as chemicals, plastics, rubber, and machinery.
This brought the total value of products subjected to full or partial import and export sanctions since Russia’s illegal invasion of Ukraine to more than £4bn.
Excluding gold and energy, it brought the proportion of goods imports from Russia hit by restrictions to more than 96%, with more than 60% of goods exports to Russia under whole or partial restrictions, the government claimed.
Foreign secretary Liz Truss also announced a ban on services exports to Russia in May, cutting it off from doing business with UK sectors that are critical to the Russian economy.
The new measures included accountancy, management consultancy, and PR services, which account for 10% of Russian imports in these sectors.
The UK has also banned the import of many iron and steel products as well as the export of quantum technologies, advanced materials and luxury goods and has cut off any new UK Export Finance (UKEF) support for Russia and Belarus.